A bit earlier as we speak, the U.S. Power Info Administration (EIA) launched its weekly stock report. The determine got here in at -1.662 million b
A bit earlier as we speak, the U.S. Power Info Administration (EIA) launched its weekly stock report. The determine got here in at -1.662 million barrels, beneath expectations (-1.050 million) and the earlier launch (-0.426 million). On Tuesday, the American Petroleum Institute (API) reported a -0.439 million barrel week-over-week drop. The API’s quantity beat projections (-1.279 million barrels) however was down large from final week (+0.620 million).
All in all, as we speak’s EIA quantity fell according to the summer time seasonality of crude oil. The height demand season for refined fuels is because of kick off this weekend with the Memorial Day vacation. If we see U.S. provides proceed to fade, be looking out for a steep June rally in WTI and USOIL.
At press time, CME July WTI futures are off barely, buying and selling simply beneath $66.00. Traded volumes have been respectable, with the July/August ratio coming in at a bit over 3/1. Regular futures backwardation is in impact, with August WTI buying and selling at a $0.25 low cost over July.
WTI Crude Oil Rallies Following EIA Launch
For the reason that EIA weekly inventories report went public (three hours in the past at press time), July WTI has rallied $0.70. That is an fascinating transfer and one that means bidders are able to act on any bullish market driver.
USOIL
Overview: Within the coming weeks, we’ll be getting into the height time of yr for crude oil pricing. Given the weakened USD, COVID-19 reopenings, and elevated demand for refined fuels, a bullish bias towards crude oil is warranted. Nonetheless, it’s not unprecedented to see a pre-Memorial Day pullback in WTI and USOIL. If a major retracement involves move within the subsequent few periods, a longer-term bullish place commerce could arrange.
Keep tuned to FX Leaders for concepts on methods to play peak demand seasonality within the world oil advanced.